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How to Sell on Credit and Get Paid Back Without Losing Customers

Give credit only to customers you know, set a limit and due date, write it down the same day and remind politely. With message scripts and a worked example.

By the KudiAI Track team · 2026-10-07 · 7 min read

A young tailor smiling at her phone beside her sewing machine

To get paid for goods sold on credit, decide who qualifies before anyone asks. Set a limit and a due date, and write the debt down the same day. Then remind early and politely, accept part payments, and stop new credit when someone keeps delaying.

Most customers pay when the terms are clear from the start. The trouble usually begins when nothing was agreed and nothing was written.

Should I give customers credit?

Credit can keep regular customers coming back and help you sell more. It can also swallow your restocking money. The Irish government's small-business guide on late payments puts it plainly: "if credit is not required, don't give it."

Credit usually makes sense when:

The customer buys from you regularly and you know where they live or work.
They have paid you on time before.
The amount is small enough that you can survive if it comes late.
It wins you a steady customer, such as a buka that buys rice from you every week.

Credit usually does not make sense when:

You have just met the customer.
They already owe you, or you know they owe other traders around you.
You need that cash today to restock your fastest-selling goods.
You are saying yes only because you feel shy to say no.

How much credit should I give, and for how long?

Set a credit limit for each customer. This is the most they can owe you at any one time. QuickBooks advises starting small with new customers and raising the limit only after they pay on time.

Always agree a fixed due date. A promise like "I will pay you soon" is not a due date. A real date, such as 16 October, is harder to forget and easier to remind about. For small daily customers, one or two weeks is easier to manage than a month.

What should I write down when I sell on credit?

Write it down the same day, while you both remember. Record:

The customer's name and phone number.
The date of the sale.
What they took, with quantities, for example 2 bags of rice and 1 carton of noodles.
The total amount owed.
The due date you agreed.
Any part payment made on the day.

Then send the customer a short message with the items, the amount and the due date. That one message settles most later arguments about how much was taken. The Irish guide gives the same advice: keep a proper record of who owes you what, and when it is due.

How do I remind a customer to pay without offending them?

Remind early, keep it short and stay friendly. Mention the amount and the date, and make paying easy by sending your account number. Here are messages you can copy for WhatsApp or SMS.

A day before the due date:

Good morning Aunty. Just a reminder that the ₦12,500 for the rice is due tomorrow. You can transfer to my account or pay when you pass. Thank you.

On the due date:

Good afternoon Oga. Today is the due date for the ₦12,500 balance. Please let me know when to expect it. Thank you for always buying from me.

One week late:

Good evening Aunty. The ₦12,500 that was due last week is still outstanding. Can you pay part of it this week and give me a date for the rest? I need it to restock.

In Pidgin:

Oga good morning. Abeg remember say the ₦12,500 for the rice na today e due. Thank you.

Remind in private, never in front of other customers. A customer who feels shamed may stop paying and stop buying.

Should I accept part payments?

Yes. A part payment is better than no payment, and it keeps the customer talking to you. Record each one with its date and tell the customer the new balance.

For example, a customer owes ₦20,000. She pays ₦5,000 on Monday and ₦7,000 on Friday. Her balance is now ₦8,000. Agree a date for the last ₦8,000 and send her the new balance in writing.

What do I do when a customer keeps delaying?

Act in steps, and stay calm at each one.

Stop new credit. Sell to them for cash only until the old debt is cleared. Say it kindly: "Let us clear the old one first."
Offer a payment plan. Break the debt into small amounts they can manage. For example, ₦24,000 can become four weekly payments of ₦6,000.
Involve a guarantor or a respected person. If someone vouched for the customer, ask them to step in. A market association leader or a respected elder can sometimes help settle it quietly.
Treat court as the last step. Some states, including Lagos and Imo, have small claims courts for simple debts of up to ₦5 million. In Lagos you must first send a letter of demand, and you may speak for yourself without a lawyer.

This is general information, not legal advice. Rules differ by state, so confirm the steps with your local Magistrates' Court registry or a lawyer for your own case.

How do I keep the customer after they pay?

Thank them when they clear the debt, even if it was late. Then set their next limit based on how they paid. A customer who paid late but kept talking to you may deserve a smaller limit, not a ban. One who paid on time can earn a higher one.

The goal is to get paid and keep the customer, not to win an argument.

How much money can I have outside on credit?

Add up what everyone owes you at least once a week. That total matters more than any single debt, because it is money you cannot use to restock. As an accountant wrote in BusinessDay, "your receivables are hanging, but your payables are urgent."

Here is a worked example for a provisions shop in Nyanya that restocks with ₦400,000 every two weeks. This is its credit list on 7 October.

Customer	Amount owed	Due date	Status
Buka owner	₦18,000	3 October	Late
School teacher	₦35,000	10 October	Not yet due
Neighbour	₦12,500	3 October	Late
Kiosk owner	₦40,000	26 September	Late
Church member	₦9,500	14 October	Not yet due
Total	₦115,000

The shop has ₦115,000 outside, and ₦70,500 of it is already late. ₦115,000 is more than a quarter of its ₦400,000 restock money.

A simple rule helps here. Cap your total credit, for example at one-quarter of your restock money. For this shop the cap is ₦100,000, so it is ₦15,000 over. It should give no new credit until some of the late money comes in.

Also count what a bad debt really costs. Say you sold ₦10,000 of goods on credit that cost you ₦8,000, and the customer never pays. You have lost ₦8,000. If you make ₦20 profit on every ₦100 you sell, you must sell another ₦40,000 just to earn that ₦8,000 back.

How KudiAI Track helps

KudiAI Track's credit tracker records every debt with its due date and part payments, and shows what is overdue. You can send a payment reminder on WhatsApp in one tap. Customers can also pay by bank transfer into your business wallet's own account number, and each payment comes with a receipt.

Questions people ask

How long should I give a customer to pay?

Agree a fixed date at the moment of sale. For small, regular customers, a short period such as one or two weeks is easier to track than an open promise.

What if a customer says they do not owe me?

Show what you wrote on the day: the date, the items and the amount. A message sent to the customer at the time of the sale makes this much easier to settle.

How do I say no when a customer asks for credit?

Be polite and brief. Explain that you need cash to restock today, and offer a smaller quantity they can pay for now.

Should I give more credit to a customer who already owes me?

Usually not. Ask them to clear or reduce the old balance first, then start again with a small limit.